As Bitcoin (BTC) experiences a price surge, driven in part by the Federal Reserve’s interest rate cut, a cryptocurrency analyst is warning that the momentum may be short-lived.
In this case, Bitcoin is approaching key price levels as market dynamics may change due to technical factors and upcoming economic events. Linda observed in TratingView post from September 21.
Stressing that this momentum could stall, the trade expert expressed concern that a “cluster of strong resistances” between the $64,000 to $65,000 price range could pose a headwind. The analysis showed that this zone, which has not yet been fully tested, could stop Bitcoin’s progress.
Further resistance is expected between $68,000 and $69,000, raising the possibility of a halt to the upward momentum. RLinda noted that current price action is showing a double top formation, which is a potential signal that the rally may be running out of steam.
While the global Bitcoin outlook on higher timeframes remains somewhat bullish, showing potential for further growth, the local view is less bullish. In the short term, RLinda stated that Bitcoin appears to be facing increasing pressure as it approaches critical resistance zones.
This discrepancy between global and local forecasts creates uncertainty, especially as traders await the release of key economic reports next week. Economic events, such as a speech by the Chairman of the Federal Reserve, can significantly affect market sentiment. Experts said the current bullishness could quickly evaporate if these indicators produce surprises.
“Trading may be nervous ahead of new news next week: SP PMI, DGP, DGO and the Fed Chairman’s speech. If the indicators become sharply unpredictable, all the bullish energy of speculators may cool down very quickly and in this case we may encounter a correction phase against the backdrop of profit taking,” the analyst said.
Bitcoin Price Levels to Watch
For now, the patterns observed by the expert indicate that Bitcoin is consolidating above the $62,750 level, indicating some short-term stability. However, if selling pressure pushes the price below this level, a sharp move towards lower liquidity areas could follow, potentially causing Bitcoin to fall to $61,300 or even further to $59,400 and $57,730.
WITH Rlinda While acknowledging that Bitcoin is currently in a consolidation phase, another pseudonymous cryptanalyst Merchant Tardigrade In a post on September 21, X noted that the current formation is the key to significant growth.
The analyst illustrated that consolidation is taking place within a symmetrical triangle, with Bitcoin breaking through key resistance levels, signaling a major breakout. Historically, pattern breakouts have preceded strong price movements, and this latest event is no exception.
Notably, the price of the cryptocurrency has already risen significantly, reaching gains of over 70% compared to previous consolidation patterns. Now, an expert has predicted that if history repeats itself, Bitcoin’s next target will be $100,000 based on the measured technical pattern move.
Bitcoin Price Analysis
At press time, Bitcoin was trading at $63,214 with a daily gain of less than 0.5%. On the weekly chart, the first cryptocurrency rose by more than 5%.
Meanwhile, Bitcoin technical indicators are bullish, with a summary of one-day indicators sourced from TradingView corresponds to a “buy” sentiment at 14. On the other hand, the moving averages indicate a “strong buy” at 12, while the oscillators are “neutral” at 6.
Thus, Bitcoin presents both opportunities and challenges at the moment, so investors should remain cautious as failure to overcome highlighted resistances could trigger a price correction.
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